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Obligation
mainly discussed in Title I (Articles 1156-1304) of Book IV of the Civil Code of the Philippines. An obligation is a juridical necessity to give, to do or not to do.Civil Code, Article 1156 This definition specifically pertains to civil obligation in difference to natural obligation. The term juridical ''in the definition refers to the legal aspect of an obligation. If an obligation is juridical, it follows that you can go to court and ask for a civil action in case of breach or non-compliance. Elements of Obligation An obligation has the following essential elements: *'Parties '- the actors involved in an obligation: **'active subject' (creditor/obligee) - one who demands the fulfillment of an obligation. **'passive subject (debtor/obligor) - one who has the duty to fulfill an obligation. *Prestation' - the conduct to be performed by the passive subject for the active subject. *'Juridical Tie' (efficient cause) - the relation that binds the parties to an obligation. Example: Under a contract of sale, D agreed to deliver a book to C for Php1000. *C is the active subject *D is the passive subject *the delivery of the book is the prestation *the contract of sale is the juridical tie that binds X and Y. Suppose X had already delivered the book but Y has not yet paid for it.In this case, X becomes the active subject and Y is the passive subject. The active subject has the right to go to court in case of non-performance by the passive subject. The passive subject should hence comply with the obligation to avoid civil action against him. Sources of Obligation An obligation can arise from:Civil Code, Article 1157 *'Law '- when there is an enforcement of law itself; the obligation cannot be presumed, and should be expressly or clearly provided for in the law in order to demandable;Civil Code, Article 1158 such as the obligation of income earning persons to pay taxes according to the National Internal Revenue Code. *'Contract '- when there is a meeting of the minds between the parties; the obligation have the force of law and should be complied with in good faith;Civil Code, Article 1159 such as the contract of sale of a book for Php1000. *'Quasi-contract' - when there is no meeting of the minds between parties, but one party benefited at the expense of the other party; there is an obligation to pay for compensation so that no one shall be unjustly enriched or benefited at the expense of another.Civil Code, Article 2142 **'Negotiorum gestio' - if one (the officious manager) voluntarily takes charge of the agency or management of another person's property on his behalf without his consent or authority;Civil Code, Article 2144 such as the obligation to reimburse the expenses incurred by someone who voluntarily saved your abandoned house from fire. **''''Solutio indebiti - if one received something that does not rightfully and legally belong to him;Civil Code, Article 2154 such as the obligation to return a money received by mistake. *'Delict' - when there is a civil liability resulting from criminal offense; should be governed by the penal laws;Civil Code, Article 1161 such as the obligation of a thief to return the money he had stolen. *'Quasi-delict' - when there is fault or negligence that causes damage on another, there being no prior meeting of the minds between the parties; there is an obligation to pay for the damage done;Civil Code, Article 2176 such as the obligation of a driver to pay for the damages he caused to another due to negligence. Effects of Obligation The duties of the debtor in the delivery of a determinate thing, which is identified by its individuality: * deliver the thing itself. * preserve or take care of the thing due with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care.Civil Code, Article 1163 * deliver the fruits of the thing from the time the obligation to deliver it arises.Civil Code, Article 1164 * deliver the accessions and accessories of the thing, even though they may not have been mentioned.Civil Code, Article 1166 in the delivery of a generic thing, which is identified by its class/type: * deliver the thing which is neither superior nor inferior quality.Civil Code, Article 1246 The debtor is also liable for damages in case of non-performance or breach of obligation by reason of delay, fraud, negligence or contravention of the tenor.Civil Code, Article 1170 ---- The remedies of the creditor in case of breach of obligation in the delivery of a determinate thing: * demand specific performance or fulfillment of the obligation by the debt (if it is still possible).Civil Code, Article 1165, par. 1 * demand rescission or cancellation of the obligation (in certain cases).Civil Code, Article 1380 in case of breach of obligation in the delivery of a generic thing: * demand the delivery of the thing which is neither superior nor inferior quality at the expense of the debtor.Civil Code, Article 1165, par. 2 This can be performed by a third party. In either case, the creditor has a right to recover damages. The other remedies can be demanded in addition to this right. Kinds of Obligation The primary classification of obligations according to the peculiarities of the prestation: * Pure obligation - performance is not subject to any condition, and can be immediately demandable.Civil Code, Article 1179 * Conditional obligation - performance is subject to a condition, and can only be demandable upon the happening of an event.Civil Code, Article 1181 * Obligation with a period - performance is subject to a period, and can on;y be demandable when that period expires.Civil Code, Article 1193 according to the number prestations: * Simple obligation - there is only one prestation. * Compound obligation - there are two or more prestations. ** Conjunctive obligation - there are several prestations and all of them can be performed separately. ** Disjunctive obligation - only one of the several prestations can be performed. It may be alternative or facultative. according to the number of parties: * Individual obligation - there is one debtor and one creditor. * Collective obligation - there are two or more debtors and two or more creditors. ** Joint obligation - the prestation is divided among each debtor and/or the demand for it is divided among each creditor.Civil Code, Article 1208 ** Solidary obligation - the prestation may be performed by any one of the debtors, and/or its entire compliance may be demanded by any one of the creditors.Civil Code, Article 1207 according to divisibility/indivisibility of the prestation: * Divisible obligation - the prestation can be partially performed. * Indivisible obligation - the prestation cannot be partially performed.Civil Code, Article 1125 according to the value of the prestation: * Principal obligation - the main/principal prestation that is essential and from which the accessory obligation/s arise. * Accessory obligation - the secondary/accessory prestation that should be performed in connection with the primary obligation. ** Obligation with a penal clause - the accessory prestation imposes a penalty that shall substitute the indemnity for damages and the payment of interests in case of noncompliance to the principal prestation.Civil Code, Article 1226 ---- The secondary classification of obligations according to the involvement of the parties: * Unilateral obligation - only one party is bound to perform a prestation. * Bilateral obligation - both parties are bound to each other in performing their respective prestations. ** Reciprocal obligation - one party is bound to perform a prestation in exchange for the other party's performance. according to the nature of the obligation * Civil obligation - has legal basis; give a right of action to compel its performance.Civil Code, Article 1423 ** Legal obligation - arises from laws. ** Conventional obligation - arises from contracts with the force of the law. ** Penal obligation - arises from delicts and criminal offences. (not to be confused with the 'obligation with a penal clause' which is an accessory obligation) * Natural obligation - has no legal basis; does not give a right of action to enforce its performance but is based on equity and natural law, and should be voluntary. according to the nature of the prestation: * Personal obligation - the prestation is to do or not to do an act: ** Positive obligation - to do an act ** Negative obligation - not to do an act * Real obligation - the prestations is to give or deliver a thing: ** Determinate obligation - to deliver a determinate thing. ** Generic obligation - to deliver a generic thing. ** Limited generic obligation - to deliver a thing confined to a particular class/kind. Obligations may have multiple classifications, but not with contradictory characteristics. Extinguishment of Obligation main article: Extinguishment of Obligation An obligation can be extinguished by:Civil Code, Article 1231 * payment or performance - the delivery of a thing, or the doing of an act or not doing of an act for the fulfillment of an obligation.Civil Code, Article 1232 * the loss of the thing due - the determinate thing is lost or destroyed without the fault of the debtor, and before he has incurred in delay.Civil Code, Article 1262 * the condonation or remission of the debt - the gratuitous renunciation by the creditor of his right against the debtor with the latter's acceptance.Civil Code, Article 1270 * the confusion or merger of the rights of creditor and debtor - the characters of creditor and debtor are merged in the same person.Civil Code, Article 1275 * compensationCompensation (extinguishment)- the simultaneous balancing of two obligations wherein two persons are reciprocally debtors and creditors of each other.Civil Code, Article 1278Civil Code, Article 1279Civil Code, Article 1290 * novation - the creation of a new and different obligation through the total or partial modification of an old obligation that it substituted.Civil Code, Article 1291Civil Code, Article 1292 * annulment - the invalidation of a voidable contract by a court action on the grounds of incapacity to give consent, mistake, violence, intimidation, undue influence, and fraud.Civil Code, Article 1390 * rescission - the revocation, cancellation, or repeal of a contract and the return of the parties to the positions they would have had if the contract had not been made. * fulfillment of resolutory condition.Civil Code, Article 1271 * prescription - ''' the loss of certain rights upon the lapse of time.Civil Code, Article 1106 par.2 In addition, other causes are: * happening of a fortuitous event.Civil Code, Article 1174 * arrival of resolutory period.Civil Code, Article 1193, par.2 * impossibility of fulfillment of the obligation.Civil Code, Article 1266 * death of a party in case the obligation is purely personal.Civil Code, Article 1311, par.1 * compromise, by making reciprocal concessions.Civil Code, Article 2028 * mutual desistance or withdrawal (mutuo disenso).Saura Import and Export Co., Inc v. DBP; G.R. No. L-24968 (1972) Resources '''General References: Websites: Citations: Category:Obligations and Contracts